An Accountant Has Been Engaged to Prepare a Nonpublic Client's

question 32

Multiple Choice

An accountant has been engaged to prepare a nonpublic client's financial statements.While preparing the financial statements,the accountant finds a number of material misstatements related to journal entries.The client refuses to correct the misstatements.Which of the following is correct?

• A)A report with an adverse opinion should be issued.
• B)All regulatory agencies should immediately be notified.
• C)The accountant should prepare the financial statements and present them using the misstated journal entries.
• D)The accountant should withdraw from the engagement.

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Definitions:

Thomas Paine

An influential writer and revolutionary, best known for his works "Common Sense" and "The American Crisis," which advocated for American independence from Britain.

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New Republic

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